Find Ways to Add Value to Your Property

You can get a great deal on a home even if you pay fair market value: find ways to add value to your property. When you’re shopping for a home, look for a few factors that enable you to make small or inexpensive changes that can make a big difference in your property values. This can be the difference between paying a fair price for a home, and getting the deal of a lifetime.

Look for homes that would benefit from minor cosmetic changes.

Some homeowners simply don’t take the trouble to make minor cosmetic changes that would make a big difference in a property. Look for properties that would benefit from new carpet, a fresh coat of paint on the walls or some landscaping upgrades to the yard. You may be able to make these minor cosmetic changes on a low budget, but they can make a big difference in the ultimate resale appeal and value of your new home.

Make an accurate estimate of what cosmetic changes would cost.

Some projects cost more than you’d expect when you start out, so if you’re buying a home with an eye to fixing it up, make sure you make an accurate estimate of what these cosmetic changes would cost.

If you’ve got friends in construction or home improvement, find out what they’d charge for your proposed projects. Go to a home improvement store and price things out, and make sure you know how much you’d spend for your ‘minor’ projects. There’s a point when the cost outweighs the value of an upgrade, so be careful not to get into a money sink when you buy a fixer-upper.

Consider cosmetic defects as a way to get a better deal.

Most homeowners are aware of cosmetic defects to the home before they try to sell. Real estate agents advise homeowners on things they could improve, so many of your suggestions won’t come as a surprise to homeowners. See if you can get sellers to come down in price relative to the cosmetic changes you want to make. In some cases, you can use this as a bargaining chip to get an even better deal on your new home.